PayPal wants to work with Apple on mobile payments

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Apple is rumored to be moving into the mobile payments business, and it appears that PayPal wants to be to part of the company’s grand entrance. Apple and PayPal already collaborate on iTunes payment processing, so it’s not surprising that it wants to be a part of a larger retail system. According to a report from Re/code, PayPal approached Apple with offers to help it with everything from fraud protection to a white label sections within the PayPal storefront.

“They’re [PayPal] telling them, ‘We’ll do it in the background,” one of these people said. “Basically, it’s just, ‘We want to be a part of this.’”

Paypal may be enthusiastic about a partnership, but Apple doesn’t necessary share the PayPal’s enthusiasm for a partnership, claim two people who are familair with the better. These sources point out that Apple has the resources to revolutionize the mobile payment market without PayPal’s help. The Cupertino company already has a mobile payment system in place with iTunes, which could be expanded to serve stores outside of Apple’s services.

How Apple will integrate the iPhone into a retail system is not clear, but a recent patent application describes a mobile payment method using NFC and Bluetooth. Apple may be laying the foundation for such a system in its retail stores. The company recently deployed iBeacon in its retail stores, and is using to assists customers as they shop. Other retailers like Safeway are also installing and testing iBeacons in their select stores nationwide.

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Categories: Apple News